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Strategic information system planning

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Information Resource Management

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Strategic information system planning

  1. 1. STRATEGIC INFORMATION SYSTEM PLANNING
  2. 2. Strategic Issues for the 1990s 1990s Business Forces • Globalisation • Worldwide competition • Productivity requirements • Volatile environment
  3. 3. Strategic Issues for the 1990s Increased Connectivity • Interorganisational business relationships • Intraorganisational coordination for increased efficiency and effectiveness • Adaptable organisation structures
  4. 4. Strategic Issues for the 1990s 1990s Information Technology Opportunities • Continued dramatic cost performance and capacity advances • New IT architectures encompassing: - Extensive communications networks - Accessible distributed databases - Enhanced human interface workstations
  5. 5. What are the key objectives of the organization? What is its strategic direction? Managerial Issues CEO CIO
  6. 6. What objectives and strategies should IS pursue? What policies should it establish? How should investments in IT be justified? Managerial Issues CEO CIO
  7. 7. What should the role of the IS function be? How should it be organized? Managerial Issues CEO CIO
  8. 8. Why Do We Need SISPs? How much is it going to cost to introduce new e – business technologies? How do I know what technology to introduce and when , given that markets are moving so quickly? What value can we create for the business by developing and implementing an IT strategy?
  9. 9. Why Do We Need SISPs? How can I keep our systems flexible and cost efficient? Which IT initiative should I do first? I have limited time, people and money. How can I implement all these IT things?
  10. 10. Why SISP? To ensure that IS both complements and assists in the achievement of our business goals. To ensure that the use of scarce resources are maximized within a business. To maximize the benefits of changing technology. To take account of the different viewpoints of business professionals and IT professionals.
  11. 11. SISP - Aims Blueprint developed for organization for the use of ICT which is Cost effective Alignment of IS / IT with organisational goals Competitive advantage
  12. 12. The Challenge is to Improve Organisational Performance The overall aim of SISP is to direct IS resources to those areas offering the most important corporate benefits Corporate Body Operations Information Systems Finance Marketing Distribution Human Resources CustomersCustomers SuppliersSuppliers EmployeesEmployees Regulatory Agencies Regulatory Agencies
  13. 13. Strategic Information Systems Planning Overall Objectives and Strategies IS Plan
  14. 14. Align the IS plan with the overall objectives and strategies of the organization. Strategic Information Systems Planning Overall Objectives and Strategies IS Plan
  15. 15. Alignment A business accomplishes its objectives by mobilizing all its units towards realizing its business scope. Coordination, perseverance, and concentration of effort toward a shared set of objectives. A business which is aligned is said to be in a state of “strategic fit.”
  16. 16. Issues in IS/IT that lead to the need of SISP. Systems investments are made that do not support business objectives Inadequate infrastructure investments made Problems caused by IS/IT investments becoming a source of conflict Loss of control of IS/IT Systems are not integrated No means for prioritising investments No mechanisms for deciding optimum resource usage Poor management of information Misunderstandings between users and IT specialists
  17. 17. Issues in IS/IT that lead to the need of SISP. Localized justification of investments can produce benefits that are counterproductive in the overall business context
  18. 18. Advantages of SISP Identify important application to invest Help organization use its IS to carry out existing business strategy Help organization define business strategy
  19. 19. Without SISP, may result: Missed opportunity Duplicated systems Incompatible systems Wasted resources
  20. 20. Where & When ISP? Any organization that has interest in getting the best out of its IT investments. Facing problems Grabbing opportunities. Information Systems (IS) fail to satisfy huge, diverse and complicated information requirements of their users.
  21. 21. Who Perform SISP? IS Planners / System Analyst Variety of stakeholders (i.e. sponsor, users) Top management commitment  successful ISP.
  22. 22. HOW? Look at business structure, function, processes, culture Look at existing IT Look at available technology. Carry out interviews. Develop policies. Develop application portfolio. Plan schedules for migration, implementation etc.
  23. 23. Internal IS / IT environment SISP - Inputs & Outputs Source: Ward et al Figure 3.8 O U T P U T S I N P U T S Strategic IS / IT planning process Current applications portfolio IT strategy Applications portfolio Models & matrices IS management strategy Business IS strategy Internal business environment Planning, approaches, tools & techniques External business environment External IS / IT environment
  24. 24. Current Definition of SISP “The continuous review of computer technology, applications and management structure to ensure that current anticipated information and process needs of the organization are met in a way that provides an acceptable return of investment (ROI), is sensitive to the dynamic politics and culture of the organization and is aware of the sociological environment within which the organization exists.” Mc Bride, De Monfort University
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Information Resource Management

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